Technical Efficiency and the Role of ICT: A Comparison of Developed and Developing Countries
This paper investigates for possible effects of information and communication technology (ICT) in reducing aggregate technical inefficiency. A translog stochastic production frontier is simultaneously estimated with a technical inefficiency model across a panel of forty-two countries in 1993-2001. Strong evidence is provided for a significant impact of ICT in reducing country inefficiencies. Further evidence indicates a significantly positive ICT impact on labor productivity, while it seems that a substitute relationship between ICT and non-ICT capital exists. Based on the model's estimates, the most efficient country in the sample is the United States, followed by India, and a number of other developed countries. Overall, developed countries operate closer to the world frontier.
Volume (Year): 47 (2011)
Issue (Month): 0 (July)
|Contact details of provider:|| Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=111024|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Feenstra, R. & Markusen, J.R., 1991.
"Accounting for Growth with New Inputs,"
380, California Davis - Institute of Governmental Affairs.
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
- Amsden, Alice H., 1992. "Asia's Next Giant: South Korea and Late Industrialization," OUP Catalogue, Oxford University Press, number 9780195076035, December.
- Kevin J. Stiroh, 2001.
"Information technology and the U.S. productivity revival: what do the industry data say?,"
115, Federal Reserve Bank of New York.
- Kevin J. Stiroh, 2002. "Information Technology and the U.S. Productivity Revival: What Do the Industry Data Say?," American Economic Review, American Economic Association, vol. 92(5), pages 1559-1576, December.
- Catherine Robinson & Mary O'Mahony & Michela Vecchi, 2004.
"The Impact Of ICT On The Demand For Skilled Labour: A Cross-Country Comparison,"
Royal Economic Society Annual Conference 2004
91, Royal Economic Society.
- O'Mahony, Mary & Robinson, Catherine & Vecchi, Michela, 2008. "The impact of ICT on the demand for skilled labour: A cross-country comparison," Labour Economics, Elsevier, vol. 15(6), pages 1435-1450, December.
- Repkine, Alexandre, 2008.
"ICT Penetration and Aggregate Production Efficiency: Empirical Evidence for a Cross-Section of Fifty Countries,"
7902, University Library of Munich, Germany.
- Alexandre Repkine, 2008. "Ict Penetration And Aggregate Production Efficiency: Empirical Evidence For A Cross-Section Of Fifty Countries," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 3(2(4)_Summ).
- Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2003.
"ICT and Productivity in Europe and the United States: Where Do the Differences Come From?,"
Economics Program Working Papers
03-05, The Conference Board, Economics Program.
- Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2003. "ICT and Productivity in Europe and the United States Where Do the Differences Come From?," CESifo Economic Studies, CESifo, vol. 49(3), pages 295-318.
- Robert J. Gordon, 2000.
"Does the "New Economy" Measure up to the Great Inventions of the Past?,"
NBER Working Papers
7833, National Bureau of Economic Research, Inc.
- Robert J. Gordon, 2000. "Does the "New Economy" Measure Up to the Great Inventions of the Past?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 49-74, Fall.
- Gordon, Robert J, 2000. "Does the 'New Economy' Measure up to the Great Inventions of the Past?," CEPR Discussion Papers 2607, C.E.P.R. Discussion Papers.
- L. Becchetti & David Bedoya & L. Paganetto, 2003.
"ICT Investment, Productivity and Efficiency: Evidence at Firm Level Using a Stochastic Frontier Approach,"
Journal of Productivity Analysis,
Springer, vol. 20(2), pages 143-167, September.
- Leonardo Becchetti & Luigi Paganetto & David Andres Londono Bedoya, 2003. "ICT Investment, Productivity and Efficiency: Evidence at Firm Level Using a Stochastic Frontier Approach," CEIS Research Paper 29, Tor Vergata University, CEIS.
- J. Bradford De Long & Lawrence H. Summers, 1991.
"Equipment Investment and Economic Growth,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 106(2), pages 445-502.
- J. Bradford De Long & Lawrence H. Summers, . "Equipment Investment and Economic Growth," J. Bradford De Long's Working Papers _122, University of California at Berkeley, Economics Department.
- J. Bradford De Long & Lawrence H. Summers, 1990. "Equipment Investment and Economic Growth," NBER Working Papers 3515, National Bureau of Economic Research, Inc.
- Kutlu, Levent, 2010. "Battese-coelli estimator with endogenous regressors," Economics Letters, Elsevier, vol. 109(2), pages 79-81, November.
- Leonardo Becchetti & Fabrizio Adriani, 2005.
"Does the digital divide matter? The role of information and communication technology in cross-country level and growth estimates,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 14(6), pages 435-453.
- Leonardo Becchetti & Fabrizio Adriani, 2003. "Does the Digital Divide Matter? The Role of Information and Communication Technology in Cross-country Level and Growth Estimates?," CEIS Research Paper 4, Tor Vergata University, CEIS.
- Mirko Draca & Raffaella Sadun & John Van Reenen, 2006.
"Productivity and ICT: A Review of the Evidence,"
CEP Discussion Papers
dp0749, Centre for Economic Performance, LSE.
- Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 117(1), pages 339-376.
- Mary O'Mahony & Michela Vecchi, 2005. "Quantifying the Impact of ICT Capital on Output Growth: A Heterogeneous Dynamic Panel Approach," Economica, London School of Economics and Political Science, vol. 72(288), pages 615-633, November.
- Lee C. Adkins & Ronald L. Moomaw & Andreas Savvides, 2002. "Institutions, Freedom, and Technical Efficiency," Southern Economic Journal, Southern Economic Association, vol. 69(1), pages 92-108, July.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Richard Kneller & Philip Andrew Stevens, 2006. "Frontier Technology and Absorptive Capacity: Evidence from OECD Manufacturing Industries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(1), pages 1-21, 02.
- Chris Milner & Thomas Weyman-Jones, 2003. "Relative National Efficiency and Country Size: Evidence for Developing Countries," Review of Development Economics, Wiley Blackwell, vol. 7(1), pages 1-14, February.
- Carlo Milana & Alessandro Zeli, 2002. "The Contribution of ICT to Production Efficiency in Italy: Firm-Level Evidence Using Data Envelopment Analysis and Econometric Estimations," OECD Science, Technology and Industry Working Papers 2002/13, OECD Publishing.
- Ruwan Jayasuriya & Quentin Wodon, 2005. "Measuring and Explaining the Impact of Productive Efficiency on Economic Development," World Bank Economic Review, World Bank Group, vol. 19(1), pages 121-140.
When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:40-53. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen)
If references are entirely missing, you can add them using this form.